India's decade-long investment in Iran's Chabahar port faces a dead end after the US allowed a sanctions waiver to expire on Sunday, with no signs of renewal. The port was central to India's plans to build a trade corridor to landlocked Afghanistan and Central Asia, bypassing archrival Pakistan.

The US regime's 'maximum pressure' campaign aims to choke Iran's economy, and the latest move targets Iran's ports. India, heavily dependent on the Strait of Hormuz for energy, has been negotiating with Tehran to secure passage, but the waiver's expiry leaves the project in limbo.

India invested at least $120 million in equipping the Shahid Beheshti terminal at Chabahar. The port also serves as the southern node of the International North-South Transport Corridor (INSTC), connecting Russia and India via Iran. However, after the US revoked all exemptions in September 2025, India secured a temporary extension until April 26, 2026, but reportedly promised to wind down operations.

In February 2025, the Indian government allocated no funds for Chabahar in its annual budget for the first time in nearly a decade. State-owned India Ports Global Ltd (IPGL) is reportedly seeking to transfer its stake to an Iranian entity. Opposition parties criticized the Modi administration for buckling under US pressure.

Analysts say Chabahar has become a 'losing bet' and a 'damaged asset.' While India may play a long game and wait for sanctions to lift, the current geopolitical climate—including the war in Iran and US tensions—makes a return unlikely. India's ultimate decision hinges on its priorities: maintaining good ties with the US or retaining control of the port.

Source: www.aljazeera.com